When a sectional title complex is first registered, an automatic consequence is that a Body Corporate is automatically formed, and all owners of sectional title units must become members of the Body Corporate.

The Body Corporate is then obliged to run the affairs of the Estate. All the members elect a Committee (the Trustees), and the Trustees are tasked with the administration of the Estate.

Included in such administration is entering into contracts with various service providers, for instance, security, landscaping, estate management, and so-on. Another essential contract is between the Body Corporate and the Municipality. This contract is for the provision of services, such as water, electricity and refuse removal.

In terms of the Constitution, all Municipalities are obliged to provide essential services to their residents, and typically enter into a written contract in this regard with their larger members (i.e. Body Corporates).

The question then arises: can a Body Corporate dispense the refuse removal service offered by its local Municipality, and provide its own service in that regard?

To Refuse or Not Refuse

A municipality is entitled to insist that its refuse removal services be used. That is the general rule.

This general rule may only be disregarded when, in the legal formation of the sectional title scheme, a specific provision was included which provided that the Body Corporate could provide its own refuse removal services.

Where a service is legitimately declined by a Body Corporate, the Municipality concerned may not charge for the service offered but not used.

The general principle then, is that the Municipality is entitled to provide all municipal services required by its residents. In certain defined circumstances, residents can choose not to use such services, in which event the municipality may not charge them.